All Forum Posts by: Dave P.

WOW....cannot wait to see that in writing somewhere.

I am assuming that a 120 day late, that is cured, will be treated as a short sale, if not better?

Any documentation you can provide would be Awesome!

You just made my day.

Dave

True.....and false....

You ask a few different questions there...let me try and break them down:

Q1. I was told you could take a home in foreclosure and still do a short sale on it even there is no equity in it.

A1. Definitely true. A short sale occurs when a bank allows someone else to purchase a property for an amount not sufficient to satisfy the current liens. This allows many opportunities to purchase properties below market value. However, just because a property is sold below loan pay-off, does not mean that it is a good investment.

Q2. was told that the bigger the 2nd was on this deal the better, you could get some equity out of the deal if you know what your doing.

A2. Not necessarily. This is kind of a wive's tale. Traditional "Guru" training teaches that second mortgage holders will be happy with a pay-off 10% of loan amount. I am sure that this used to happen all the time, and I am sure that it still happens occasionally....however, i do not believe that "most" banks subscribe to this philosophy. When negotiating short sales, I have found it beneficial to have only one lender, even if it's a 100% loan.

By the way, what I am seeing in my area, is that local banks in second position, are not negotiating. The personal relationships are too deep. In fact, the sellers are more concerned about "screwing" the local guy. In general, they could care less about the big national company.

hope this helps.

dave

I believe FMV is about $325,000...so 76%

Hence, great reasoning for disclosure.

That is million dollar advice. I strongly advise against "don't ask, don't tell" strategies. By no means am I insinuating that is where you were headed, but in my opinion, it would be very wise to disclose all aspects of the deal to the bank(s).

Good luck!

Big_Bo,

I'm an agent that works almost exclusively in the loss mit portion of the market. I work with a regular pool of investors on short sales (and other good investments) that I find.

I can tell you, the one key component in the investor/realtor relationship is mutual respect. I can see undertones in this great forum of some anti-realtor sentiment...and that's cool with me...I get it. The barrier to entry to become a real estate agent is pretty low...and, at the same time, the barrier to entry to become a "real estate investor" is just about the same.

An incompetent investor is just as annoying as an incompetent realtor. Last week, I had a 22 year old, self proclaimed "Playa", come in to my office and tell me that he wanted to buy a foreclosure because he heard they were "hot". His strategy was to make offers at 40% of list price on 50 properties....sounds fun, but no thanks.

The bottom line is if you are lucky enough to find a good agent, respect them and their time and they will treat you like gold.

Herb Cohen:

"negotiate this"

Best of all time.

Just to update this post....

the SS packet was submitted in full to the bank today.

Final stats:

Loan: $400,000
Sale Proceeds: $248,000
Difference: $152,000

We shall see.

I think the domain name question is a great one.

I purchased the domain below without really thinking about it. I recently went back to godaddy and spent about an hour looking for something that really defined my niche.

I came up with two that i was really pleased to find available:

transparentagent.com

and

shortsaleblogger.com

I recommend sticking to a dot com and really thinking about what you are communicating to potential customers.

kwikbuy.com and getprequalified.com are both brilliant. With a little bit of thought, you can think of something like that too.

I echo other posters in this forum, direct mail, constantly and routinely.

However, make sure you measure the results.

For email, I use Aweber and constant contact. I think aweber is superior, however it requires double opt in, meaning that all subscribers must verify their request to opt in.

This results in a very high quality lead, however, it makes it slower to build your list...but that's the price you pay for quality.

Good luck!